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Old Issues but New Tricks: China uses the UNESCO Cultural Diversity Convention in a WTO dispute

January 12, 2010 by Nicole Aylwin

Nicole Aylwin is a Ph.D. Candidate in the Communication and Culture Graduate Programme at York University.

This past December the World Trade Organization appellate body ruled against China in a dispute with the United States. The US initiated the dispute in 2007 to address three concerns: 1) China was prohibiting foreign businesses from importing publications, music, DVDs and other audiovisual products; 2) China was prohibiting foreign businesses from distributing reading materials and music electronically; and 3) China was imposing burdensome requirements on certain products before they could be distributed.  In short, the US alleged that China was using a state administered “content review” mechanism to prevent the distribution of foreign goods. China defended itself against these allegations by arguing that the goods in question, such as finished audio-visual products, are cultural goods, which have a significant impact on public morals. Thus, China should be allowed to impose a high level of protection on these goods and determine the way in which they enter into the country (if at all).

In its defense against the allegations, China attempted to establish a clear link between cultural goods and social, cultural, moral and political life. This is not the first time the WTO Dispute Settlement Body has seen a country attempt to establish a link between the protection of its cultural goods and its cultural life.  In 1998, Canada attempted to draw on this connection in a dispute with the US that resulted in a very high-profile loss (the split-run magazine decision).  This is the first time, however, that a country drew on the UNESCO Universal Declaration on Cultural Diversity (the Declaration) and the new legally binding Convention on the Protection and Promotion of the Diversity of Cultural Expressions (the Convention) in order to do so.

By referencing Article 8 of the Declaration, which asserts that cultural goods are “vectors of identity, values and meaning” and by referring to the Convention to emphasize the influence of cultural goods on societal values, China put into action the political discourse of cultural diversity, which governments in other countries have been slow to do in the international legal arena.

What is interesting about China’s use of the Declaration and Convention is that they do not use them to defend against the accusation that they are violating existing trade agreements, but rather they use them to establish that cultural goods not only have commercial value but also cultural value. Getting the WTO to even acknowledge this argument is no small feat. As practitioners and scholars working in the area of diversity and policy issues have pointed out, the Convention is unlikely to ever act as a recognized defense against liberalized trade rights—a view clearly supported by the WTO appellate body and all three third parties who noted that the Convention may not be interpreted as “modifying rights and obligations of the Parties under any other treaties to which they are parties” (the Convention, Article 20 (2))—however, by entering the argument into public record China has taken a step towards using the Convention and Declaration to define the relationship between cultural diversity and cultural goods.

Much like the 20 year debate surrounding the Draft Declaration on Indigenous Peoples helped to create a set of minimal normative standards in regard to the treatment of indigenous peoples long before the final Declaration was adopted, the way in which the Declaration and the Convention become used across multiple fields of practice, including trade negotiations, will impact the way in which cultural diversity norms, standards and models come to be defined.

The fact that this WTO decision was yet another ‘big win’ for the US is perhaps the least significant part of this decision. This decision is an important moment that deserves attention from civil society groups, policy activists, intellectual property lawyers and anyone interested in the emerging international cultural policy framework. Such a decision can influence the direction policy will take, how diversity is defined and what diversity will look like in the future.

Posted in IP

7 Responses to “Old Issues but New Tricks: China uses the UNESCO Cultural Diversity Convention in a WTO dispute”

  1. monty cantsin, on January 14, 2010 at 6:25 am Said:

    Really interesting article. Where did you find the Chinese citation of the UNESCO Convention? Did you see the appeal itself (where did you get hold of it?) or is it referred to in the record of the WTO decision?

  2. Nicole Aylwin, on January 15, 2010 at 11:10 am Said:

    It’s all available online on the WTO site. Here you can read findings and conclusions in pdf format or if you’ve got time the full decision (it’s about 500 pages!): http://www.wto.org/english/news_e/news09_e/362r_e.htm

  3. Nicole Aylwin, on January 15, 2010 at 11:25 am Said:

    Also, if anyone is interested in issues related to the Cultural Diversity Convention and it’s relationship to global trade, Garry Neil (who kindly brought this decision to my attention), the Executive Director of the International Network for Cultural Diversity, has written extensively on the topic. Some of his work (along with other great papers) can be found here: http://www.incd.net/resources/papers.html

  4. monty cantsin, on January 17, 2010 at 10:53 am Said:

    I’ve looked through the Report of the Panel, and Annexes A-D, but can find no reference to the UNESCO Convention – I’m sure China cited it somewhere in their appeal, but where is it?

  5. Nicole Aylwin, on January 19, 2010 at 10:35 am Said:

    You need the Report of the Panel from Aug. 12 2009. One of the first references is on p. 94, also p. 116. The first reference to the Declaration is on p. 301.

    Hope this helps.

  6. monty cantsin, on January 26, 2010 at 12:17 pm Said:

    Thanks – that’s very interesting! At one point the report says that the Chinese referred to the Universal Declaration on CD (the one that was adopted in 2001) and that it was also adopted by the US…but I don’t think that is true?

    I just noticed that China has made a statement unveiling a plan to boost domestic film production (http://online.wsj.com/article/BT-CO-20100125-700952.html – “…China will promote the construction of digital cinemas through subsidies and preferential tax measures, the statement said. China will also encourage financial institutions to increase support of the film industry through bank lending, bond issuance and venture capital financing”). I can’t find the statement (anyone found it?), but this seems like a reaction to the WTO ruling. I wonder if they referred to the UNESCO Convention in outlining such plans – as I understand it, these were exactly the kind of measures that the Convention’s key supporters – France-Canada – had in mind…

  7. monty cantsin, on January 29, 2010 at 10:38 am Said:

    Although he doesn’t refer explicitly to the UNESCO Convention, I think he also hits the nail on the head here in analysing the WTO decision: http://www.danwei.org/china_books/the_wto_ruling_on_chinas_regim.php

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